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Question 15 Not yet answered Marked out of 1.00 Flag question Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs

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Question 15 Not yet answered Marked out of 1.00 Flag question Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The profitability index for Project A is Select one: a. 1.22. b. 1.12. O c. 1.27

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